I will now briefly state the salient features of the Annual Financial Statements dealing with the Budget Estimates for the ensuing fiscal 2011-12. The total budgetary receipts have been projected at Rs 31,212 crore indicating an increase of 20% over the current year’s BE figure of Rs 25,984 crore. Out of this estimated amount, Rs 26,701 crore have been categorized as revenue receipts and Rs 4,511 crore as capital receipts. As the State’s Annual Plan is yet to be finalized by the Planning Commission of India, these receipt figures have been worked out on a projected State plan outlay of Rs 6,600 crore. The categorization of receipts is based on the pattern adopted by the Planning Commission of India for the Scheme of Financing of the current year’s annual plan outlay. The inter-se classification between revenue and capital receipts is likely to change to some extent at the time of finalization of the next year’s plan outlay and settlement of Scheme of Financing by the Planning Commission.
The total estimated revenue expenditure comes to Rs 22,752 crore. The capital expenditure both on account of Plan and Non-Plan has been estimated at Rs 8,460 crore.
The State’s own tax and non-tax revenue inclusive of its share in the central taxes totals to Rs 9,131 crore and represents about 29.25% of its total estimated receipts. This compares well with the figure of 24.79% calculated as per RE figures of the current fiscal. The state’s own tax and non-tax revenue totals to Rs 5,803 crore which works out at 18.59% of the total budgetary receipts for the next fiscal.
I am placing the target of tax revenue collections for the next fiscal at Rs 4,183 crore as against the current year’s BE of Rs 3,505 crore, projecting an increase of around 20% from BE to BE. Out of the total tax collection targets, the BE for VAT collection has been kept at Rs 3,025 crore aiming at an increase of Rs 514 crore over the current year’s BE of Rs 2,511 crore. In percentage terms, it comes to around 20.5%. The collection on account of Excise Duties is targeted at Rs 333 crore as against the current year’s BE of Rs 280 crore. Collections against Taxes on Goods and Passengers are aimed at Rs 382 crore as against BE of Rs 334 crore in the current fiscal. Among other major tax items, Taxes on Vehicles and Stamp Duties are expected to contribute Rs 123 crore and Rs 76 crore respectively to the state exchequer as against the current years BE targets of Rs 101 crore and Rs 67 crore respectively.
Non –Tax Revenue
As far as the next year’s non-tax revenue collections are concerned, the BE figures work out to Rs 1,620 crore as against the current fiscal’s BE of Rs 1,307 crore and RE of Rs 1,475 crore. Out of the total non-tax receipts, the Power Development Department is being assigned a target of Rs 1,330 crore as power receipts in comparison to current fiscal’s BE of Rs 1,055 crore and RE of Rs 1,209 crore. Among other notable contributors on the non-tax revenue side during the next fiscal are Mining, Forestry, Water Supply and Health Services which are expected to contribute Rs 35 crore, Rs 60 crore, Rs 31 crore and Rs 17 crore respectively as against the current fiscal’s BE of Rs 30 crore, Rs 38 crore, Rs 27 crore and Rs 15 crore respectively.
The total expenditure of Rs 31,212 crore projected for the next financial year is broadly divided into a plan outlay of Rs 6,600 crore and PMRP outlay of Rs 1,200 crore. Expenditure on Centrally Sponsored Schemes is estimated at Rs 425 crore. As many of the Centrally Sponsored Schemes are shifting to off budget mode, I am keeping a figure of Rs 425 crore only in next year’s Budget Estimates, corresponding to the figure of Rs 386 crore projected in current year’s RE which is considerably lower than the current year’s BE figure of Rs 850 crore. These figures will get firmed-up after the Planning Commission concludes its plan exercise. I may mention here that the kitty of Central Schemes for which funds flow directly to the implementing agencies outside the State budget is likely to swell to Rs 4,300 crore as against about Rs 3,000 crore in 2010-11.
The non-plan expenditure during the next fiscal has been estimated at Rs 22,987 crore, up by Rs 5,059 crore over the current fiscal’s BE of Rs 17,928 crore. Based on the projected figures of the next year’s plan outlay, the break-up between the revenue and capital expenditure comes to Rs 22,752 crore on revenue account and Rs 8,460 crore on capital account.
Salaries & Allowances
The non-plan expenditure on salaries of the government employees inclusive of the provision for the two DA instalments which will become payable during the next fiscal is estimated at Rs 11,360 crore which would be Rs 3,246 crore more than the current year’s RE of Rs 8,114 crore. The revenue component of the Plan Outlay works out to Rs 1,178 crore which is primarily on account of salaries of the staff borne on the Plan. In addition to this amount, the estimated requirement of grants-in-aid for the autonomous bodies and institutions has been worked out at Rs 727 crore as against Rs 482 crore estimated in the BE of the current fiscal. A provision of Rs 1,607 crore has been kept on account of two DA installments which shall become due from January 1, 2011 and from July 1, 2011 and one installment which became due on July 1, 2010.
The expenditure on pensions and retirement benefits to the employees is estimated at Rs 2,651 crore during the next fiscal as against RE of Rs 2,031 crore in the current fiscal.
The expenditure on payment of interest is estimated at Rs 2,363 crore during the next fiscal as against Rs 2,251 crore worked out in RE of the current fiscal. The expenditure on account of cost of purchase of electrical energy is projected at Rs 2,400 crore as against the current year’s BE of Rs 2,050 crore and RE of Rs 2,324 crore.
A sum of Rs 1,174 crore is estimated to go out on account of repayment of loans, as against Rs 959 crore budgeted in the BE as well as RE of the current fiscal.
Annual Plan 2011-12
The next fiscal’s Plan Outlay has been projected before the Planning Commission of India at Rs 6,600 crore inclusive of the State share against Centrally Sponsored Schemes. This proposed outlay comprises of a capital component of Rs 5,422 crore and revenue component of Rs 1,178 crore. In addition to the annual plan outlay, the requirement on account of schemes taken up under PMRP has been projected at Rs 1,200 crore. Main schemes included in the PMRP are Power Transmission and Distribution (Rs 359 crore), Mughal Road (Rs 191 crore), Land acquisition for PMGSY roads (Rs 127 crore) and counterpart funds for World Bank Schemes (Rs 120 crore). Despite the repeated attempts of certain mischievous elements to disrupt the developmental activities during the summer months in Kashmir Valley, full government thrust on plan performance has been maintained during the current fiscal. We are hopeful that the physical and financial targets fixed under the current year’s plan shall be attained before the closure of the current fiscal.
The Planning and Development Department has proposed to keep a provision of Rs 259 crore under Agriculture and Allied Activities Sector for the on going as well as expansion programmes. This indicates an increase of 18% over the current year’s outlay. Allocation of Rs 130 crore has been proposed under Industries and Mining Sector indicating an increase of over 27%. Likewise, Rs 1,100 crore have been proposed under Education Sector indicating increase of over 12% on the current plan base. Priority is also being accorded to other sectors like Power, Tourism, Social Welfare, Roads, Irrigation, Health, Forestry, Animal Husbandry, Education, Technical Education, Housing, Urban and Rural Development and PHE.
Under the multi-pronged strategy adopted by the government, hydel projects of 6000 MW capacity are expected to be executed during the Eleventh and the Twelfth Five Year Plans. A new Hydel Policy is expected to be finalized very soon. Three on going hydel projects namely 44 MW Chutak, 45 MW Nimoo Bazgo and 240 MW Uri-II hydel projects are expected to be commissioned during the next financial year under the Central sector.
Five Grid Stations of 1240 MVA capacity at 220 KV level and 12 Grid Stations of 600 MVA capacity at 132 KV level are likely to be completed in the State Sector during the next financial year. Two Grid Stations at 400/220 KV level have been approved at New Wanpoh in Kashmir and Samba in Jammu in the Central Sector. With a view to reducing T&D losses, a scheme under Restructured Accelerated Power Development and Reforms Programme has been approved for implementation in 30 towns of the State, with a population of 10,000 and above, at a cost of Rs 191 crore.